MAM
WPP to make tender offer for digital marketing co Syzygy.
MUMBAI: WPP, which currently holds shares representing just below 30 per cent of the issued share capital in Syzygy AG, is planning to make a tender offer for the digital marketing firm.
WPP has been a long term investor in Syzygy AG and continues to believe in the future of Syzygy AG. With this tender offer, WPP’s management is keen to help the company expand and to work with WPP’s major clients in Germany and internationally.
“This would be easier if the Group had a greater ownership. WPP would also like to capitalize on Syzygy AG’s strong relationships with leading German multinationals and local companies,” the company said.
WPP believes that its existing facilities can provide Syzygy AG with offshore capabilities in low cost locations, which are becoming increasingly important in providing the effective and efficient solutions needed by clients.
“All of these goals will be supported by a larger or potential majority shareholding,” WPP said.
According to the company, Syzygy’s current valuation is at an advantageous level for share owners but is based on very low average daily volumes. The WPP offer will provide the market liquidity for share owners who wish to take advantage of the current price by tendering their shares.
